On ethics of advisers' China deals, Trump goes case by case

2of3FILE - In this Jan. 22, 2017, file photo, National Economic Council chairman Gary Cohn arrives for a White House senior staff swearing in ceremony in the East Room of the White House in Washington. One would-be White House employee has been prevented from starting work because of a deal with China, while another White House employee has been with President Donald Trump from Day One, even though he holds stock in a Chinese bank. The White House says hedge fund manager Anthony ScaramucciÂs deal was far more complicated than economic adviser CohnÂs stock holdings, which he is selling. But some government watchdogs point to their disparate treatment as an example of how ethics matters are being handled unevenly. (AP Photo/Andrew Harnik, File)Photo: Andrew Harnik, STF

3of3Gary Cohn has held a multimillion-dollar stake in a Chinese bank.﻿Photo: Evan Vucci, STF

WASHINGTON - Anthony Scaramucci announced to the world in January that he would be leaving Wall Street for the White House to become President Donald Trump's top public liaison. Not long after, Scaramucci was told by Trump's chief of staff that the sale of his hedge fund - a deal that includes a well-known Chinese conglomerate - raised too many ethics issues for him to start work immediately.

Scaramucci never left New York.

It's a different story for Gary Cohn.

The former Goldman Sachs executive, the man who is now Trump's economic adviser reported for duty on Day One and has become a constant White House presence, often at the president's side. All the while, Cohn has held a multimillion-dollar stake in a Chinese bank, which he's now selling.

White House officials say Scaramucci's transaction is far more complex than Cohn's holdings, arguing that's why it gave them pause. But others point to the two cases as an example of Trump's uneven approach to handling ethics concerns.

The White House this week acknowledged it did not secure an ethics pledge from ousted national security adviser Michael Flynn, who served for two weeks after Trump signed an executive order mandating that officials agree to a five-year lobbying ban and lifetime prohibition on foreign lobbying. White House officials offered no explanation for why Flynn didn't sign the documents.

"At least so far, the ethical standards that are being applied to high-level officials coming in are quite incoherent and seemingly haphazard," said Meredith McGehee, a chief at the government reform group Issue One who has worked on federal ethics laws and policies for decades.

With so many well-off business executives coming into the administration, the Trump team could minimize conflict-of-interest questions by being more consistent and transparent, she said. "Instead, they seem like they are leading with their chin," she added.

White House spokesman Sean Spicer said the Trump team "has been very committed to making sure that we institute high standards here and that we're held to them."

Business intersections with China are particularly nettlesome, given many Chinese companies' ties to the country's Communist Party. Adding another layer of complexity is Trump's frequent vow to take a tougher stance on China's trade and currency practices, which could affect Chinese companies' ability to sell their goods and services in the U.S.

But while Scaramucci raised red flags in the White House, others - including Trump's son-in-law and the president himself - have Chinese business ties that do not seem to have drawn as much internal hand-wringing.

The sale of Scaramucci's hedge fund is expected to go through this spring.